WHEN ARGENTINE Malvinas Islands on 2 April, they focused the world's attention on a small piece of Argentine territory that has been occupied by Britain for 149 years. Although the Malvinas were the only portion of Argentine territory over which Britain exerted direct political control, in the 19th century British capital turned all of Argentina into a de facto colony, until after World War II.
In 1828, years betore the British seized the Malvinas, for example, they were airectly responsible for breaking off what now Uruguay Large-scale British investment in Argentina first occurred around the building of railroads, But skyrocketed action ing 187 in the first refrigerator ship that could transport meat from Argentina to Europe without it spoiling.
In 1884 the first meatpacking plant was built in Buenos Aires with British capital, and by 1890 there were 278 refrigerator ships constantly shuttling between DUCHOS Britain.
At the turn of the century, fully 80 per cent of all collicall was control Argentine life had become so overwhelming that 19th Argentine President Bartolomé Mitre called England 'the principal factor the country's troops landed on the a status that continued political, and economic progress.' the 1930s Cabilalsts controlled about three-quarters the railroad mileage, most urban railway transit systems, much of the dustry, and had stakes in chemical works, tyre factories, and other mastes. addition, Britain was by the largest customer for Argentine meat and grain, Was Argentina's largest supplier of industrial imports.
1933 Argentina's status as a virtual Brish colony was formalised in the koca-kunciman pact.
the terms of the treaty, Argentina promised to buy guaranteed amounts of industrial goods in return for a British agreement to buy specified amounts of Argentine beef.
As lale as total $2.5 billion in foreign Investment 60 per cent came trom HMS Invincible. The naval task force is a warning to all semi- colonial countries British capitalists. Their biggest foreign Cull petitors capitalists, controlled only cent Following World War II, however the over whelming control over the Argentine economy was broken. During the war, Argenlilla had continued to sell Britain large amounts of beet and grain, although Britain had nothing to sell in return. As a result, Argentina built up huge currency reserves in British banks.
Juan Perón, who had become president used Argentina In 1943. these huge reserves to buy out British investments in himsell a nero ol Argentine nationalists in the process When the Argentine government purchased the British-owned railroads in 1948, there was rejoicing throughout the country.
In the postwar period. US capitalists have Masseu counterparts in terms of But banks continued to play a crucial role in Argentine financial life and in financing the country's huge foreign debt.
Today Argentina's foreign debt stands at the astronomical level OI DJbillion. Of Argentina's total foreign debt, nearly $6 billion is directly owed and much of the rest was syn. dicated through Londor banks.
In this connection, the Thatcher government's freeze of Argentine deposits in British banks and its veto on any further loans to Argentina could deal a crippling blow to the Argentine economy.
The development of the crisis around Malvinas Islands demonstrates the extent to which Britain remains major imperialist despite relative economic decline since the Second World War.
In addition, the British imperialist state still has the military power to send troops halfway around the defend economic and political in terests. In this sense, the dispatch of the including nuclea somaline and aircratt to the South Atlantic is not on v a war ning to the Argentine hands off 'British proper ty', but is a warning to all semicolonial countries that the military will defend economic interests throughout the world Intercontinental Press